Multinationals risk paying higher taxes unless they engage with the Treasury about its proposed reform of the taxation of foreign profits, a firm of tax advisers has warned.

KPMG said companies appeared reluctant to join in the debate about a Treasury discussion document, which outlined radical changes to the tax treatment of the overseas activities of British companies. Sue Bonney, head of UK tax, said: “Our plea is to respond to it and engage in the debate and shape what finally comes out... If UK business fails to engage with the authorities, it will be on shaky ground if it later complains about the final shape of the reforms.”